Adding a Blog to my Website

I’m using the Responsive theme (by Themeid) and the person I’m creating the website for wants to add a Blog to the website. I saw some instructions in the codex section about creating two pages and making one static in the Dashboard>Settings>Reading section which I did, but when I make the page static is changes my permalink to the main website page and doesn’t let me edit the permalink. I don’t know of that’s the problem. In some other areas I read that you have to set up a subdirectory and install another copy of WordPress? I’m fairly new so any help would be welcome.